AUSTIN, Texas—Jeffrey W. Baumgartner, Vice President of Research and Development at Cirrus Logic, Inc. (NASDAQ:CRUS), executed a notable transaction involving the company's common stock on November 19, according to a recent SEC filing.
Baumgartner sold 5,542 shares of Cirrus Logic stock at an average price of $101.05 per share, amounting to a total transaction value of $560,019. The sales were conducted under a pre-established Rule 10b5-1 trading plan, which was adopted on August 20, 2024. The shares were sold in multiple transactions at prices ranging from $100.45 to $101.61.
In a related transaction, Baumgartner exercised stock options to acquire 5,542 shares at a price of $68.56 per share, with the total value of this acquisition amounting to $379,959. Following these transactions, Baumgartner now holds 10,381 shares of Cirrus Logic common stock directly.
These transactions reflect Baumgartner's strategic management of his holdings in the semiconductor company, known for its audio and voice IC products.
In other recent news, semiconductor company Cirrus Logic has seen significant developments. The company reported a record Q2 revenue of $541.9 million for fiscal year 2025, marking a 45% sequential rise and a 13% growth compared to the same period last year, fueled by strong smartphone demand. Loop Capital initiated coverage of Cirrus Logic shares with a Buy rating and a price target of $130, taking over from previous analyst coverage. Meanwhile, CFRA maintained a Hold rating on the stock but lowered its price target to $109. Stifel also retained a Buy rating but trimmed its price target to $140. These adjustments followed Cirrus Logic's Q3 FY 2025 revenue outlook, which was revised to 12.4% lower than Stifel's estimate. The company has also launched new products and entered the laptop market, which are expected to contribute to future revenue streams. Looking ahead, Cirrus Logic anticipates significant growth in FY '26, with revenue from PC-focused products expected to be in the low tens of millions.
InvestingPro Insights
To provide additional context to Jeffrey W. Baumgartner's recent stock transactions, let's examine some key financial metrics and insights from InvestingPro for Cirrus Logic (NASDAQ:CRUS).
As of the latest data, Cirrus Logic boasts a market capitalization of $5.32 billion, with a price-to-earnings (P/E) ratio of 16.3. This relatively low P/E ratio, especially when considered alongside the company's near-term earnings growth prospects, suggests that the stock might be undervalued. In fact, an InvestingPro Tip highlights that Cirrus Logic is "Trading at a low P/E ratio relative to near-term earnings growth."
The company's financial health appears robust, with another InvestingPro Tip noting that Cirrus Logic "Holds more cash than debt on its balance sheet." This strong liquidity position is further supported by the fact that the company's liquid assets exceed its short-term obligations, providing a solid financial foundation.
Despite these positive indicators, it's worth noting that Cirrus Logic's stock has experienced a significant decline recently. The data shows a 19.43% drop in the past month and a 28% decrease over the last three months. This downturn might explain the timing of Baumgartner's stock option exercise and subsequent sale, as executives often manage their holdings in response to market conditions and personal financial planning.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Cirrus Logic, providing a deeper understanding of the company's financial position and market performance.
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